Canada’s new commerce cope with China is getting a combined response in Washington, with U.S. President Donald Trump voicing assist as administration officers warned Ottawa might remorse permitting Chinese language EVs into the Canadian market.
The deal signed with Beijing on Friday reverses course on 100 per cent tariffs Canada slapped on Chinese language electrical autos in 2024, which aligned with comparable U.S. duties. Canada and China additionally agreed to cut back tariffs on canola and different merchandise.
Requested in regards to the deal by reporters on the White Home, Trump stated Prime Minister Mark Carney was doing the proper factor.
“That’s what he ought to be doing. It’s a superb factor for him to signal a commerce deal. If you may get a cope with China, you need to do this,” Trump stated.
Nonetheless, members of Trump’s cupboard expressed concern.
“I believe they’ll look again at this choice and certainly remorse it to convey Chinese language automobiles into their market,” U.S. Transportation Secretary Sean Duffy stated at an occasion with different U.S. authorities officers at a Ford manufacturing unit in Ohio to tout efforts to make autos extra reasonably priced.
U.S. Commerce Consultant Jamieson Greer informed reporters the restricted variety of autos wouldn’t influence American automotive corporations exporting automobiles to Canada.
“I don’t count on that to disrupt American provide into Canada,” he stated.
“Canada is so depending on america for his or her GDP. Their whole inhabitants is crowded round our border for that cause. I’ll let you know one factor: if these automobiles are coming into Canada, they’re not coming right here. That’s for positive.”
Get day by day Nationwide information
Get the day’s prime information, political, financial, and present affairs headlines, delivered to your inbox as soon as a day.
Carney has stated it’s essential for Canada to enhance commerce ties and cooperation with China in gentle of Trump’s commerce struggle and threats to let the Canada-U.S.-Mexico Settlement on free commerce expire.
The commerce pact is up for evaluate this summer season, and Greer reiterated that the Trump administration desires to convey extra auto manufacturing again to the U.S. and incentivize corporations to take action.
Below the brand new cope with Beijing, Carney stated he expects China will decrease tariffs on its canola seed by March 1 to a mixed charge of about 15 per cent.
Greer questioned that settlement in a separate CNBC interview.
“I believe in the long term, they’re not going to love having made that deal,” he stated.
He known as the choice to permit Chinese language EVs into Canada “problematic” and added: “There’s a cause why we don’t promote plenty of Chinese language automobiles in america. It’s as a result of we’ve tariffs to guard American auto staff and Individuals from these autos.”
Greer stated guidelines adopted final January on autos which might be related to the web and navigation programs are a major obstacle to Chinese language autos within the U.S. market.
“I believe it might be onerous for them to function right here,” Greer stated. “There are guidelines and laws in place in America in regards to the cybersecurity of our autos and the programs that go into these, so I believe it is likely to be onerous for the Chinese language to adjust to these type of guidelines.”
Trump and officers like Greer have taken purpose at Chinese language makes an attempt to enter the North American automotive market via Mexico by bypassing guidelines of origin beneath CUSMA.
The CUSMA evaluate set for July is anticipated to handle these loopholes that American and Canadian officers have stated are being exploited by China.
These issues, which have been additionally raised by the Biden administration, partly helped spur the steep tariffs on Chinese language EVs, that are closely backed by Beijing.
Trump, nevertheless, has additionally stated he would love Chinese language automakers to come back to america to construct autos.
Each Democrat and Republican lawmakers within the U.S. have expressed sturdy opposition to Chinese language autos as main U.S. automakers warn China poses a risk to the U.S. auto sector.
Ohio Senator Bernie Moreno, a Republican, stated at Friday’s occasion on the Ford plant that he was against Chinese language autos coming into america, and drew applause from the opposite authorities officers.
“So long as I’ve air in my physique, there is not going to be Chinese language autos bought america of America — interval,” Moreno stated.
—with information from Reuters
© 2026 International Information, a division of Corus Leisure Inc.
